2007-03-01 23:56:34 · 5 answers · asked by rip 1 in Business & Finance ➔ Personal Finance
only if you sold it last year and thus had a realized capital loss. max loss you can take in any year, after netting out all your various realized gains and losses on schedule D, is $3000, the rest gets carried over into the next year's tax computation.
2007-03-02 00:48:13 · answer #1 · answered by jim06744 5 · 0⤊ 0⤋
DId you just sell it this year? If you purchased a stock (this year or three years ago, or fifty years ago for that matter), and you sold it this year, then you have to pay tax on the capital gain of the stock this year.
If there was a negative capital gain, then yes, you can deduct the negative from your taxes up to a point. I did this a couple years ago and was able to deduct up to $3000. I have not looked lately, that number may be different. Anyway, there is a maximum you can deduct from your income. If you lost more than that, then next year that loss can again be used to offset all other capital gains or to point your normal income.
If you want more information, take a look at the capital gains schedule for US federal income tax or cunsult a tax professional
2007-03-02 08:06:05 · answer #2 · answered by Leo N 2 · 0⤊ 0⤋
If you actually record a loss by selling the stock there are situations where you can reduce your tax burden as a result. But in all reality this is probably not the best forum to be asking questions that could result in your getting an audit if the advice is bad. You should contact either the IRS for help with your question (which would be free and accurate information), or contact an accountant/tax preparer.
2007-03-02 08:06:50 · answer #3 · answered by 12341234 2 · 0⤊ 0⤋
Stock losses can't be deducted until you "recognize them" and that requires that there be a "recognition event" which in most cases means that you sell the stock. If the company goes bankrupt or the stock becomes worthless, you can usually recognize your loss as well.
2007-03-02 08:21:01 · answer #4 · answered by DLeibowitz 5 · 0⤊ 0⤋
In the USA, only if you actually sold the stock or the IRS determines that it became worthless in that year. You cannot take a loss if you still hold the stock and it is still worth something.
2007-03-02 08:01:20 · answer #5 · answered by skip 6 · 1⤊ 1⤋